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I made no claim that PCE is better at capturing those categories; only that it is a better method overall than CPI. Both indexes take into account tuition, for
by mdorazio 8y ago
I made no claim that PCE is better at capturing those categories; only that it is a better method overall than CPI.
Both indexes take into account tuition, for example, but not student loan obligations, which are absolutely massive in comparison to things like electronics and wireless plan obligations. The same is true for medical expenditures, but not medical debt. And of course a huge issue is that any national measure of inflation is not accurate for people who live in places outside the median, such as cities in California where rising costs of living routinely push local CPI increases far beyond national levels (BLS does provide more local numbers, but they're rarely discussed).
I don't doubt that your data is correct, I just don't think it's very important in the scope of the overall contributing factors to real-world inflation for most people.